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We are underwater and on an interest only loan. Need ideas on how to refinance please.

 Our current interest rate is 6%.  Our loan is not freddie, sallie or fha.  We are current on our loan.  We owe about 213, 000 and our home value is around 175,000.  How can we possibly refinance?
  • June 25 2012 - Titusville
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Answers (3)

I recently closed a short sale transaction where the seller was about $40,000 underwater.  After the closing he told me he looked up the amortization charts and it would have taken TWELVE YEARS before he paid the loan down to what the new buyers paid for the property.  12 years just to get to zero!  This seller was recently divorced, and now that there was only one income to pay for the house instead of two, he was "house poor" with most of his take home pay just going to pay the housing expenses.

The fact that your loan is interest only sounds like it could be a much longer wait for you.  While your inquiry only mentioned that you were current on payments, it did not really shed any light on the rest of your financial situation.  Have you considered the long term ramifications of getting out from under this mortgage, and then starting over in a few years right side up?  

You can always search the Certified Distressed Property Expert website for a local agent who can answer your questions regarding short sales.  Here is the link:

http://www.cdpe.com/find/cdpe

Best of luck!
  • June 27 2012
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you won't be able to refinance UNLESS it was one of the Fannie, freddie or FHA loans.
  • June 25 2012
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loan not owned by freddie, frannie or fha.
thank you.
  • June 25 2012
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